What is An Agent?

An agent is a licensed individual who works as a link between the insured and the insurance company. They have signed an agency contract with an insurance company for the purpose of selling insurance for that company. An individual agent is not exactly an employee of the insurance company itself, but rather an independent contractor.

An agent has the authority to bind coverage (legally obligate the insurance company to provide coverage according to the terms and conditions as bound). An individual agent deals with the representation of an insurance company, therefore premium payments made to the agent is equivalent to remitting payment to the insurance company.

What is the role of a Life or Health Insurance agent? An insurance agent usually doesn’t do any analysis of the type of business that you own, which is why he might not be the best person to go for advice on what coverage type would suit you best. Remember that, in the end, he will get a commission over whatever he sells to you, but it’s your responsibility to be prepared and know what your needs are.

Types of Agents

There are two basic types of agents: captive agents and independent agents.

• Captive Agents

  A captive agent is an agent that is contracted to work with a specific Insurance (or specific group) of insurance companies. This means that the agent will only sell Health Insurance from this company. While the agent might be able to offer great deals and be very knowledgeable of the Primes within his or her line of work, a captive agent might not be as knowledgeable of other companies’ Primes and benefits offered.

• Independent Agents

  An independent agent is an agent that is contracted to sell Insurance from various Insurance Companies who are not related. A great advantage from independent agents is that as several companies contract them, they are able to shop around and get better deals on insurance coverage.

  Don’t be fooled by the concept of an independent agent, though. It’s extremely rare to come upon an agent who represents all or most insurance companies. They usually have more options to offer from, which makes it easier to find an Insurance Plan that best suit your needs.

  Usually, independent agents have a better understanding of the pros and cons of almost all the policies available with different companies. They can provide comparison charts of the policies available with different insurers. This makes suggesting options that better suit your requirements an asset in your favor.

Being an Agent

There are many parts of being an agent. From the momento they are licensed and become an agent, to the work they do as Agents:

• Becoming an Agent

  There are a series of steps to be taken in order to become a Life Insurance agent. Usually agents must successfully pass their state's Property Casualty licensing exam in order to conduct business as an agent.

  Life and health insurance agents and brokers must be licensed by their state, which means passing an insurance examination and sometimes taking pre-licensing courses. While a college degree is not necessary to become an agent, continuing education is a key to maintain your license. Agents contracted by big insurance companies and working in big agencies are usually on top of the game when it comes to continuing education, since they have access to many resources offered by their employers.

• The work of an Agent

  So what does an agent usually does? One of the main roles of a life insurance agent is to collect the monthly or yearly payments from a policyholder in name of the insurance company. If the policyholder dies while the coverage by the policy is in place, then an agent’s role is to work to make sure that the designated members of his family receive the benefits as offered in the policy terms.

  Some health insurers are employed by the government and work in Federal Agencies to enforce Medicaid policies, or work to help individuals get compensated for medical bills, or hospital fees if they have Health or Life insurance.

  It’s extremely important that an Individual agent is knowledgeable and fluent in the world of health insurance, as they might be presented with situations that will have to deal with policy terms or deals that aren’t as simple, such as workmen’s compensation, or work-related injuries.

• Reaching Out

  Insurance agents can work either in their home state as insurance sellers, or work as a Non-Resident agent in many states throughout the country. In order for an agent to work out-of-state, they must be licenses in their home state.